The debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transactions will increase, decrease or not change the debt equity ratio:

(i) Obtained a loan from 1CICI Bank 1,00,000 payable after 5 yrs.

(ii) Purchased machinery for cash 1,50,000.

(ii) Redeemed 9% debentures 1,00,000,

(iv) Issued equity shares for purchase of machinery of 5,00,000 to the vendors.

Marks-4, CBSE:2022-23/Zone-2/Set-1/Q-33*

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